Subject: Indian Polity

India's alternative dispute resolution mechanisms like Lok Adalats and Arbitration Tribunals play a crucial role in reducing the burden on conventional courts, with Lok Adalats alone resolving 1.17 crore cases in 2023 through their people-friendly approach.

Nature and Composition

• Lok Adalats (People's Courts):

  • Established under the Legal Services Authorities Act, 1987.
  • Comprises judicial and non-judicial members including retired judges, social workers, and legal experts.
  • Follows principles of natural justice and aims at compromise-based settlements.

• Arbitration Tribunals:

  • Governed by the Arbitration and Conciliation Act, 1996.
  • Consists of appointed arbitrators chosen by parties in dispute.
  • Follows a more formal procedure with binding decisions based on evidence.

Jurisdiction and Powers

• Lok Adalats:

  • Handle both civil and compoundable criminal cases.
  • Deal with matters like motor accident claims, matrimonial disputes, and consumer issues.
  • Pecuniary jurisdiction limited to ₹10 Lakhs.
  • No appeal lies against the award.
  • Demonstrated high efficiency with 3.09 crore cases resolved in first National Lok Adalat of 2025.

• Arbitration Tribunals:

  • Primarily focus on civil and commercial disputes.
  • Cannot entertain criminal matters.
  • No statutory limit on pecuniary jurisdiction.
  • Limited grounds to challenge its award under Section 34 of Arbitration Act.
  • Particularly effective in resolving business and contractual disputes.

Key Distinctions

• Procedure:

  • Lok Adalats follow conciliatory approach with emphasis on compromise.
  • Arbitration follows quasi-judicial procedure with formal hearings.

• Cost and Time:

  • Lok Adalats are free of cost and provide speedy justice.
  • Arbitration involves professional fees and follows prescribed timelines.

The success of these alternative dispute resolution mechanisms, evidenced by 3.09 crore cases resolved in first National Lok Adalat of 2025, demonstrates their effectiveness in ensuring access to justice and reducing judicial pendency through Article 39A principles of free legal aid and speedy justice.